US-based grocery firm Supervalu has finalised the $1.36bn cash sale of its Save-A-Lot unit to an affiliate of Onex Corporation.
The deal is subject to customary closing adjustments.
Under the terms of the deal, Supervalu and Save-A-Lot have entered a five-year professional services agreement, which requires Supervalu to offer certain back office services to Save-A-Lot.
Supervalu president and chief executive officer Mark Gross said: “With the successful completion of the Save-A-Lot sale, we are well-positioned for the future with a stronger balance sheet, the opportunity to more strategically invest in our business, and the ability to more keenly focus on our core business as a leading grocery wholesaler.
“We also look forward to continuing our relationship with Save-A-Lot as one of our important professional services customers.”
Supervalu has used $750m of the net proceeds to prepay that portion of its outstanding term loan balance.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe grocery firm plans to use the remaining net sale proceeds to further decrease debt, enhance its capital structure, contribute to its pension plan, and support corporate and growth initiatives.
A grocery wholesaler and retailer, Supervalu currently operates through a network of 2,012 stores and has 30,000 employees.
Image: Supervalu grocery store. Photo: courtesy of Supervalu.